World Environment Day 2024: 3 Strategies Retailers Can Use To Reduce Their Carbon Footprint

Sustainability has been an ongoing focus for retailers in the past few years. Consumers are becoming increasingly conscious of the impact their spending habits have on the environment, with one in ten saying they will make a purchase decision based on carbon footprint data availability. A further 27% of consumers have made significant changes to shop more sustainably, some are even willing to pay as much as 24% more for sustainable goods. Retailers must work to translate this across to their operations and strive to incorporate sustainable practices into their business models.

Celebrated annually on 5th June, World Environment Day aims to encourage awareness and action for the protection of the environment. Consumers and businesses are encouraged to reflect on the choices they make and how they could live more sustainably. Our latest blog explores three key strategies retailers can adopt to meet their company’s sustainability and carbon-emission goals…

 1. Optimize Supply Chains

Currently, retailers are responsible for more than 25% of global emissions, much of which comes from their supply chain operations. Yet, with supply chains being so vast and made up of so many stages, total visibility can be challenging. By using an innovative Inventory Management Solution, retailers can gain precise visibility into their supply chain. As a result, they can enhance operational efficiency and boost sustainability. For example, by understanding what they have in their inventory they can better manage stock allocation, avoiding unnecessary transportation and overproduction of any items. This can significantly reduce carbon emissions.

Retailers can use RFID technology to gain item-level traceability in real-time. By tagging each product retailers can offer customers key information such as where items are sourced, and the journeys they have taken. Customers can access the data such as the origin of raw materials, holding retailers accountable for the sustainable sourcing of their products. This allows retailers to showcase their environment-friendly practices while enabling customers to make sustainable choices.

2. Recreate In-store Operations

From optimizing in-store layouts and designs to implementing sustainable practices such as paperless receipts, retailers can make the in-store shopping experience completely sustainable. Retailers can use innovative analytics and simulation solutions to optimize store layout and design for energy efficiency. By strategically arranging aisles, shelves, and product displays, retail brands can improve airflow, and boost natural lighting while reducing the need for artificial lighting and heating.

In order to reduce emissions from paper, retailers can transition to digital receipts and paperless transactions. As a result, they can minimize emissions associated with printing, transporting paper receipts, and paper waste. Retailers can provide digital receipts electronically via emails or mobile applications, promoting eco-friendly purchasing practices among customers.

3. Manage Returns

Returns continue to be a challenge for retailers, not only from a business view but also from an environmental perspective. All returned items are not resold and often end up in landfill sites, significantly adding to carbon emissions. In fact, the amount of online returns of fashion items produced 750,000 metric tons of carbon dioxide just in 2022. The figure did not include the emissions due to reverse transport, amounting to 350,000 metric tons of CO2 over the considered year. Identifying opportunities to improve operational processes to minimize returns can help retailers reduce unnecessary waste from returned items and enable them to improve customer satisfaction.

Retailers can reduce their online returns by improving their order fulfillment processes. According to Statista, nearly 60% of shoppers return items due to size issues. Other common reasons include damaged items, late deliveries and products not matching descriptions. By deploying an effective Order Management System (OMS), retailers can significantly improve these factors and reduce returns. When the Teamwork Commerce OMS receives order confirmation, the order fill logic creates a ship memo based on the allocated primary location, enabling a real-time data flow and total accuracy in order management. As a result, retailers can deliver the right product at the right time, enhancing customer satisfaction while reducing returns. Ultimately, this can improve their sustainability posture.

Sustainability Isn’t a Choice, But a Necessity

Today, the question isn’t when but how. Shoppers have become more conscious of their environmental impact than ever before. Retailers who take appropriate steps to become sustainable can earn consumer loyalty while playing a vital role in tackling a global challenge.

Learn more about how the right technology can align your strategy with your sustainability goals here!